06/05/2012

Research Proposal on The Impact of Micro Finance Institutions on Small and Medium Enterprises in Rural Kenya

Title

The proposed title for the study is The Impact of Micro
Finance Institutions on Small and Medium Enterprises in Rural Kenya. This
paper will show the
goals and objectives of the paper and the different instruments,
procedures and approaches to be used in order to successfully implement the
research.

Background of the Study/Literature Review

In
Kenya, micro finance institution focuses on eliminating
poverty. It focuses on helping people in poverty and small to medium
businesses to access additional resources. One of said institutions in Kenya is
the
Kenya Rural Enterprise Program (K-REP). It is a non-governmental
organization which was implemented in 1984 under the funding of
USAID. The objective and goal of the institution is to channel financial and
technical assistance and
training towards the local non-governmental organization which wish to start
or expand credit programs for the
development of SME. In 1993, K-REP was registered as an NGO under the
NGO registration Act of 1992 (K-REP, 2003). Currently, K-REP is fully
licensed as a bank and provides a wide range of
banking services in addition to its micro finance specialty (Dondo, 1991).
According to Rosengard et al. (2000) K-REP already expanded its services.

Descriptive method will be used in the study. According to Creswell (1994) it
can help in order to show the different facts that are connected with the nature
of the status of the current problem or condition as it happens at the time of
the study. This is the reason why, it is considered as one of the most applied
methodology in most studies. Furthermore, it will also be helpful in order
to offer logical use in the studies which focus on dissemination of information,
at the same time, it can help in order to investigate based on normative
standards. It will be helpful in order to focus on the
practices which exist,
beliefs and processes that are currently going on and the effects that are
being felt and experienced, together with the trends that re currently
developing (Best, 1907).

1.1Data
Collection

Survey
questionnaire will be used in order to gather primary data from the respondents.
Likert scales will be used, where in the respondents will be asked to rate the
level of their agreements towards the statements given. This will also be
advantageous because it will make filling up questionnaire a lot easier and
faster.

The
equivalent weights of the answers are:

Range Interpretation

4.50 –
5.00 Strongly Agree

3.50 – 4.
49 Agree

2.50 –
3.49 Uncertain

1.50 –
2.49 Disagree

0.00 –
1.49 Strongly Disagree

1.2Sample
Frame

The
target population for the study is 50 managers from Micro-Finance institutions
in the country. In addition, a total of 100 questionnaires will be disseminated
to
SME managers in the country.

1.3Data
Analysis

All of
the data will be evaluated with the use of SPSS software. Thus, in order to come
up with the results and findings of the study, frequency, percentage and
weighted mean will be calculated. The following are the formulas to be used:

1.
Percentage – will be
calculated in order to determine the magnitude of the responses to the
questionnaire (Research Methods Knowledge Base, n.d.).